Tough message for Aust.

Press, 12 June 1986, Page 10

Tough message for Aust.

NZPA Sydney The Australian Prime Minister, Mr Bob Hawke, laid the country’s economic cards on the table last evening and told the nation it must tighten its belt, accept lower standards, export more, and buy Australian goods. He strove to bring home to Australians the extent of the economic problem, and the direction that must be taken to resolve it. His speech lacked specifics and new proposals but was strong on exhortations, leaving him room to move with the unions, business, and state governments. He has targeted wages, welfare, the public service, and exports as the main areas for change. The most innovative moves will be a scheme to make youngsters work for the dole wherever possible, and a campaign for Australians to buy Australian goods in preference to imported ones. Tax cuts due on September 1 will be delivered by December 1 at the latest. He wants businessmen to show the same restraint in income as he is asking of the unions, he wants them to keep price rises down, and he wants them to export more. The Australian dollar closed firmer in thin trading but fell sharply shortly afterwards in an adverse, reaction to Mr Hawke’jfeddress.